According to a recent study, the vast majority of Cadillac Lyriq drivers opted to lease rather than purchase their vehicles during the fourth quarter of 2024. Data from Experian shows that 75.8 percent of new Cadillac Lyriq drivers chose a lease, while 13.42 percent financed their vehicle with a loan and 10.77 percent paid in cash. This high lease rate suggests that a significant number of these vehicles will soon enter the used market, which could influence future resale values.
Experian’s analysis also covered the top ten best-selling EVs in the U.S. during the Q4 2024 timeframe. Leading the list was the Tesla Model Y, which accounted for more than 25 percent of all EV sales in the U.S. during the quarter. The Tesla Model 3 followed in second place with a share of 16.45 percent, while the GM-based Honda Prologue (4.83 percent), Chevy Equinox EV (4.5 percent), and Hyundai Ioniq 5 (4.27 percent) round out the top five. The Cadillac Lyriq, Cadillac’s first all-electric production model, placed eighth on the list.
Among the top-10 EVs, the Honda Prologue had the highest lease rate at 91.14 percent, followed by the Ioniq 5 at 80.21 percent. Meanwhile, the Tesla Model Y recorded the highest loan rate, with 72.1 percent of buyers choosing financing. The Tesla Cybertruck stood out with the highest percentage of cash purchases, with 35.54 percent of Cybertruck buyers paying outright.
The high lease rate for the Cadillac Lyriq and other EVs reflects a cautious approach from consumers amid the broader transition to electric vehicles. It seems to reason that customers prefer leasing as a way to experience EV ownership without committing to long-term concerns such as battery degradation, resale value, and potential technological advancements.
This leasing trend also suggests that in 24 to 48 months, a wave of off-lease Lyriq units will enter the pre-owned market, potentially affecting residual values. If supply outpaces demand, resale prices could decline, making used Lyriqs an attractive option for budget-conscious EV buyers in the near future.
As previously reported, General Motors saw a massive 363-percent increase in EV sales in the U.S. during Q4 of 2024, totaling 43,976 units. This surge was led by the Chevy Equinox EV, which accounted for 18,089 units.
Comments
I consider this to be further evidence of my belief that EVs in general and more specifically today’s EV Cadillacs will be viewed more as disposable cars going forward That doesn’t mean no one will ever keep one long term but I think it’s much less likely.
Cadillacs have often had long lives and were prized many decades after their production. They were many times purchased by buyers late in life as a reward and used sparingly, meticulously cared for, and then subsequently cherished by collectors. I’m personally fond of mid-60s and late-70s/early 80’s era cars.
I don’t see that same future collectibility for today’s electric Cadillacs. I think they’ll be purchased, used till the batteries need replacement, then discarded like cheap cars; a Civic for instance.
I also think GM no longer markets Cadillacs to an esteemed older clientele likely to have multiple vehicles and who would naturally pamper their Cadillac. That was the case in 1980 but no longer.
Today’s target buyer is younger, more urban and much more likely to own few or only one vehicle which they’ll use heavily then turn it in if it’s leased where it will go through several more similar owners and eventually disposed of like any other commodity car.
I think today the V and V Blackwing cars of today are probably the last of the pampered and collectible Cadillacs. Once they’re gone, the classic Cadillac market will be largely a thing of the past.
Great observations Rocket and I agree with you on most of it. Beachy – take note!
Cadillac has a bright and interesting future, as the brand and all GM move forward into a changing environment. The 1980’s was 45 years ago. The market and all the world of today is, of course, quite different. What matters is if people will feel passionately for these high tech and leading edge styled new Cadillacs. I for one believe strongly that they will.
jg,
The 80s were indeed 45 years ago which is significant because those are the cars being added to classic car collections today and many of those era Cadillacs are now sought after and can often be found in pristine condition owing to the fact that they were cherished when new and lovingly cared for. I wouldn’t expect that to be the case 45 years into the future with the EV Optiqs and Lyriqs of today. I suspect they’ll all be gone.
In terms of whether people passionately care about Cadillac today versus 50 years ago, I think sales are a clue. In 1978, Cadillac sold 349,684 units in the US; their best year ever. Today, with a vastly expanded US population (226 million in ‘78 vs 340 million now), Cadillac only sold 160,204 vehicles. In 1978, they were “America’s Luxury Car Leader” as they billed themselves with sales far outpacing rivals. Today, Cadillac isn’t even in the top-five.
We’ll see what happens over the next 50 years but my opinion is that what’s sold today won’t be around for the long haul and the fact that so many EV Caddies are being leased tells me nobody is buying them up to keep and pass on to their heirs.
The majority of people shopping BMW, Audi, Mercedes, etc. are lease vehicles. Because the depreciation is too great to deal with.
I for one bought my Cadillac. Because I keep them until they die, rot out from underneath me, or get totaled.
I also put 20K a year on it. A lease wouldn’t be in my best interests.
Just a side note. A lot of people lease RR’s too. The monthly nut is huge.